Hi Anant: Please look at the “objects of the issue”, it says ‘to gain
benefits of listing’ Company didnt raise money, it was all secondary sale.
SEBI mandates them to sell 25% minimum. This objective is meant for people
who want to sell their stake paying STT thus saving capital gains. Surely
we are looking at an eventual sale out in the company. Of course, promoter
has a lock in and all that, but its clear why the listing happened. Given
the margin profile, sale may happen at seriously high valuation.
My view on IPO valuation is that since the offer for sale is promoters own
(last issue @ 192, see RHP) and its done at depressed valuation, likely to
save capital gains for the seller.
On the burgeoning receivables what you say is only half the stories. The
methods you indicating are accompanied by growth in sales which leads to
believe the company is aggressively growing. This is a company which
supplies to capital good and auto industry, and we all know how the topline
growth scenario has been off late.
Regards,
Nakul Sarda
+91 97021 77729
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